The following transactions of Trust Ltd took place during the year ended 30 June 19X7: 19 X6

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The following transactions of Trust Ltd took place during the year ended 30 June 19X7:

19 X6 1 July Purchased \(£ 12,0004\) per cent Consolidated Loan (interest payable 1 February and 1 August) at \(60 \frac{1}{2}\) cum div.

12 July Purchased 2,000 ordinary shares of \(£ 0.5\) each in Abee Ltd for \(£ 4,000\).

1 August Received half-year's interest on 4 per cent Consolidated Loan, 15 August Abee Ltd made a bonus issue of three ordinary shares for every two held. Trust Ltd sold 2,500 of the bonus shares for \(£ 1\) each.

1 October Purchased 5,000 ordinary shares of \(£ 1\) each in Ceedee Ltd at \(£ 0.775\) each. \(19 \times 7\)

2 January Sold \(£ 3,0004\) per cent Consolidated Loan at 61 ex div.

1 February Received half-year's interest on 4 per cent Consolidated Loan.

1 March Received dividend of 18 per cent on shares in Abee Ltd.

1 April Ceedee Ltd made a 'rights' issue of one share for every two held at \(£ 0.5\) per share. 'Rights' sold on market for \(£ 0.25\) per share.

1 June Received dividend of \(12 \frac{1}{2}\) per cent on shares in Ceedee Ltd.

Required Write up the relevant investment accounts as they would appear in the books of Trust Ltd for the year ended 30 June \(19 \times 7\), bringing down the balances as on that date.

Ignore brokerage and stamp duty.

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ISE Business Accounting

ISBN: 9780273638407

8th Edition

Authors: Frank Wood, Alan Sangster

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